Which credit score is most accurate?

Home Forums Credit Reports & Scores Which credit score is most accurate?

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #8610
    Geoff Massanek
    Moderator
    #8788
    Team StellarFi
    Keymaster

    To figure out the accuracy of a credit score could be misleading. Credit scores are calculated based on the information in your credit reports. This information is provided by creditors and lenders with whom you have active credit accounts. Credit reports are made by credit bureaus that compile all your credit history. So, your credit score could be inaccurate if there are errors in your credit report or if some information is yet to be reported.

    This is why it helps to regularly review your credit reports from the three widely used credit bureaus – TransUnion®, Equifax®, and Experian® – and dispute any errors you see in them. Credit scores also keep changing over a period of time based on the credit activity being reported and the scoring models being used. The two most widely used credit scoring companies – FICO® and VantageScore® – have individual factors based on which they calculate scores. FICO is used by 90% of the lenders and VantageScore is used by nine out of ten American banks. Different versions of the scoring models are used for different purposes at different times. This also affects how your credit score changes. So, in order to understand the changes in your credit score, it is important to understand what kind of information is being reported to whom, by whom, and when.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.

StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Related questions

Home Forums Credit Reports & Scores Credit Reports & Scores

Viewing 15 topics - 1 through 15 (of 223 total)
Viewing 15 topics - 1 through 15 (of 223 total)
  • You must be logged in to create new topics.